Estimates of appropriations

Vote Treaty Negotiations - Māori Affairs Sector - Estimates 2020/21

Vote Treaty Negotiations#

APPROPRIATION MINISTER(S): Minister for Treaty of Waitangi Negotiations (M74)

APPROPRIATION ADMINISTRATOR: Ministry of Justice

RESPONSIBLE MINISTER FOR MINISTRY OF JUSTICE: Minister of Justice

Overview of the Vote#

The Minister for Treaty of Waitangi Negotiations is responsible for appropriations in Vote Treaty Negotiations for the 2020/21 financial year covering the following:

  • a multi-year appropriation of $1,400 million for the four-year period 2020 to 2024. This appropriation is for the settlement of historical Treaty of Waitangi claims and provides for the payment of redress through the transfer of assets (cash and property) from the Crown to claimant groups, and for the payment of interest on settlement redress
  • a total of over $39 million for the departmental expenses in settling historical Treaty of Waitangi claims, determining customary interests in marine and coastal areas and implementing settlements of claims
  • a total of over $10 million for financial assistance toward determining customary interests in the marine and coastal area, and
  • a total of over $8 million for claimant funding to support the settlement of historical Treaty claims.

Details of these appropriations are set out in Parts 2-4.

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

Titles and Scopes of Appropriations by Appropriation Type 2019/20 2020/21
Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

     

Treaty Negotiations and Marine and Coastal Area Customary Interests (M74)

This appropriation is limited to departmental expenses incurred in settling historical Treaty of Waitangi claims, determining customary interests in marine and coastal areas, and implementing such settlements of claims and determinations of interests.
16,507 16,507 39,086

Total Departmental Output Expenses

16,507 16,507 39,086

Non-Departmental Other Expenses

     

Claimant Funding (M74)

This appropriation is limited to payment of claimant funding related to the settlement of historical Treaty of Waitangi claims.
13,102 5,000 8,102

Financial Assistance Toward Determining Customary Interests in the Marine and Coastal Area (M74)

This appropriation is limited to providing financial assistance to applicant groups to investigate their customary interests in the marine and coastal area.
8,680 1,998 10,450

Contribution to Parihaka community engagement with the Crown support package (M74)

This appropriation is limited to providing financial support to the Parihaka community to engage in the development and implementation of the Crown support package.
78 - -

Contribution Toward Determining Customary Interests in the Marine and Coastal Area (M74)

This appropriation is limited to providing financial assistance for the investigation of applicant groups' customary rights under the Marine and Coastal Area (Takutai Moana) Act 2011.
2,549 2,549 -

Crown Contribution to Facilitate the Transfer of Landcorp Assets to Ngāti Kahungunu ki Wairarapa Tamaki nui-a-Rua (M74)

This appropriation is limited to part payment by the Crown for Landcorp assets being transferred to Ngāti Kahungunu ki Wairarapa Tamaki nui-a-Rua.
2,425 36 -

Specific Redress Arrangements (M74)

This appropriation is limited to Crown contributions to support the delivery of redress arrangements in specific circumstances as determined by the Minister for Treaty of Waitangi Negotiations.
15,000 15,000 -

Total Non-Departmental Other Expenses

41,834 24,583 18,552

Multi-Category Expenses and Capital Expenditure

     

Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act MCA (M74)

The single overarching purpose of this appropriation is to support the Crown in the negotiation, administration and implementation of historic Treaty of Waitangi settlement claims and the Marine and Coastal Area (Takutai Moana) Act 2011.
22,747 22,747 -

Departmental Output Expenses

     

Policy Advice - Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act

This category is limited to the provision of advice to support decision-making by Ministers on government policy matters relating to Treaty Negotiations and the Marine and Coastal Area (Takutai Moana) Act 2011.
808 808 -

Representation - Waitangi Tribunal and Courts

This category is limited to Crown representation in the Waitangi Tribunal and in the Courts on matters concerning Treaty claims, and associated research into historical Treaty grievances to support representation.
2,241 2,241 -

Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act

This category is limited to the negotiation and implementation of historical Treaty claims, and the administration and implementation of the Marine and Coastal Area (Takutai Moana) Act 2011.
19,698 19,698 -

Total Multi-Category Expenses and Capital Expenditure

22,747 22,747 -

Total Annual Appropriations and Forecast Permanent Appropriations

81,088 63,837 57,638

Multi-Year Appropriations#

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Non-Departmental Other Expenses

   

Historical Treaty of Waitangi Settlements 2019 - 2023 (M74)

This appropriation is limited to the settlement of historical Treaty of Waitangi claims, including redress through the transfer of assets (cash and property) from the Crown to the claimant groups, and any simple interest payable on settlements between the date specified in the Deed of Settlement and the settlement date.

Commences: 30 June 2019

Expires: 30 June 2023
Original Appropriation 1,400,000
Estimated Actual for 2019/20 350,000

Historical Treaty of Waitangi Settlements 2020 - 2024 (M74)

This appropriation is limited to the settlement of historical Treaty of Waitangi claims, including redress through the transfer of assets (cash and property) from the Crown to the claimant groups, and any simple interest payable on settlements between the date specified in the Deed of Settlement and the settlement date.

Commences: 30 June 2020

Expires: 30 June 2024
Original Appropriation 1,400,000
Estimated Actual for 2019/20 -

Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations#

  2019/20 2020/21
Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000
Total Annual Appropriations and Forecast Permanent Appropriations 81,088 63,837 57,638
Total Forecast MYA Non-Departmental Other Expenses 350,000 350,000 350,000

Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations

431,088 413,837 407,638

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives#

Policy Initiative Appropriation 2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000
Specific Redress Arrangements

Specific Redress Arrangements

Non-Departmental Other Expenses
15,000 - - - -
Implementation of Marine and Coastal Area Customary Interests

Treaty Negotiations and Marine and Coastal Area Customary Interests

Departmental Output Expenses
- 3,640 3,640 3,640 3,640
Continue Momentum to Complete Historical Treaty of Waitangi Settlements

Treaty Negotiations and Marine and Coastal Area Customary Interests

Departmental Output Expenses
- 5,000 5,000 - -
Relativity Mechanism Dispute Resolution

Treaty Negotiations and Marine and Coastal Area Customary Interests

Departmental Output Expenses
- 2,500 - - -
Maintaining Critical Technology to ensure the Delivery of Justice Services

Treaty Negotiations and Marine and Coastal Area Customary Interests

Departmental Output Expenses
- 337 130 132 134
Takutai Moana Financial Assistance: Additional Funding

Contribution Toward Determining Customary Interests in the Marine and Coastal Area

Non-Departmental Other Expenses
- - - 214 8,557
Total Initiatives   15,000 11,477 8,770 3,986 12,331

Summary of Financial Activity

  2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
Actual
$000
Actual
$000
Actual
$000
Actual
$000
Final Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 38,162 32,922 33,782 37,090 39,254 39,254 39,086 - 39,086 36,130 31,132 31,134
Benefits or Related Expenses - - - - - - N/A - - - - -
Borrowing Expenses - - - - - - - - - - - -
Other Expenses 424,846 143,150 265,145 60,100 391,834 374,583 - 368,552 368,552 368,552 363,766 372,109
Capital Expenditure 11,818 - 6,111 2,466 - - - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -
Multi-Category Expenses and Capital Expenditure (MCA)                        
Output Expenses - - - - - - - - - - - -
Other Expenses - - - - - - - - - - - -
Capital Expenditure - - - - - - N/A - - - - -

Total Appropriations

474,826 176,072 305,038 99,656 431,088 413,837 39,086 368,552 407,638 404,682 394,898 403,243

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 9,777 1,024 734 725 708 708 N/A 708 708 708 708 708
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

9,777 1,024 734 725 708 708 N/A 708 708 708 708 708

Note - where restructuring of the vote has occurred then, to the extent practicable, prior years information has been restated as if the restructuring had occurred before the beginning of the period covered. In this instance Total Appropriations for the Budgeted and Estimated Actual year may not equal Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations in the Details of Appropriations and Capital Injections.

Adjustments to the Summary of Financial Activity Table Due to Vote Restructuring

  2015/16
Adjustments
$000
2016/17
Adjustments
$000
2017/18
Adjustments
$000
2018/19
Adjustments
$000
2019/20
Final Budgeted
Adjustments
$000
2019/20
Estimated
Actual
Adjustments
$000

Appropriations

           
Output Expenses 29,040 32,922 33,782 37,090 22,747 22,747
Benefits or Related Expenses - - - - - -
Borrowing Expenses - - - - - -
Other Expenses - - - - - -
Capital Expenditure - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - -
Multi-Category Expenses and Capital Expenditure (MCA)            
Output Expenses (29,040) (32,922) (33,782) (37,090) (22,747) (22,747)
Other Expenses - - - - - -
Capital Expenditure - - - - - -

Total Appropriations

-

-

-

-

-

-

Crown Revenue and Capital Receipts

           
Tax Revenue - - - - - -
Non-Tax Revenue - - - - - -
Capital Receipts - - - - - -

Total Crown Revenue and Capital Receipts

- - - - - -

The prior year information in the Summary of Financial Activity table has been restated to reflect the current Vote structure.

Total Vote: All Appropriations

Figure 1 - Vote trends in actual and budgeted expense and capital expenditure by appropriation type

The Vote trends in actual and budgeted expense and capital expenditure by appropriation type chart is a Line chart

Source: Ministry of Justice

Output Expenses

Output expenses remain fairly consistent over the trend period. Time-limited funding has been approved for 2019/20 and 2020/21 to support the higher than anticipated demand for determining customary interests.

Other Expenses

The fluctuation in Other Expenses primarily reflects the size and timing of Treaty Settlements under Historical Treaty of Waitangi Settlements multi-year appropriation, which varies as each negotiation progresses through key milestones over the full course of the negotiation.

Non-Tax Revenue and Capital Expenditure

Prior to 2016/17 the Ministry administered the Landbank purchases, and maintenance of properties and received rental income. This activity was transferred to Land Information New Zealand from 1 July 2016. The non-tax revenue from 2017/18 relates to interest received from lending to implement the Ngati Whatua Orakei Deed of Settlement.

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Treaty Negotiations and Marine and Coastal Area Customary Interests (M74)

Scope of Appropriation
This appropriation is limited to departmental expenses incurred in settling historical Treaty of Waitangi claims, determining customary interests in marine and coastal areas, and implementing such settlements of claims and determinations of interests.
Expenses and Revenue
  2019/20 2020/21
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 16,507 16,507 39,086
Revenue from the Crown 16,507 16,507 38,705
Revenue from Others - - 381
Comparators for Restructured Appropriation
Vote, Type and Title of Appropriation 2019/20 2020/21
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Vote Treaty Negotiations: Multi-Category Expenses and Capital Expenditure:
Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act MCA
22,747 22,747 -
Total 22,747 22,747 39,086
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve supporting the Crown in the negotiation, administration and implementation of historical Treaty of Waitangi settlement claims and Marine and Coastal Area customary interests.

How Performance will be Assessed and End of Year Reporting Requirements
Assessment of Performance 2019/20 2020/21
Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The satisfaction of the Minister for Treaty of Waitangi Negotiations with progress towards negotiation milestones

At least 8/10 8/10 At least 8/10

The satisfaction of the Minister for Treaty of Waitangi Negotiations with ministerial services, as per the common satisfaction survey

At least 8.5/10 8.5/10 At least 8.5/10
Quality of policy advice
     

The satisfaction of the Minister for Treaty of Waitangi Negotiations with the policy advice service, as per the common satisfaction survey

At least 3.5/5 3.5/5 At least 3.5/5

An average score for policy advice papers that are assessed (see Note 1)

3.5/5 3.5/5 3.5/5

Percentage of policy advice papers that are assessed score 3 or higher out of 5 (see Note 1)

80% 80% 80%

Percentage of policy advice papers that are assessed score 4 or higher out of 5 (see Note 1)

40% 40% 40%

Percentage of policy advice papers that are assessed score 2.5 or less out of 5 (see Note 1)

<20% <20% <20%
Representation - Waitangi Tribunal and Courts
     

The Crown is represented at 100% of current Waitangi Tribunal District inquiries

100% 100% 100%

Number of High Court cases at which the Crown is represented

2 2 5
Treaty Negotiations and the Marine and Coastal Area
     

Percentage of settlement date obligations met

100% 100% 100%

Deeds of Mandate signed (see Note 2)

3 3 1

Agreements in Principle signed (see Notes 2 and 3)

1 1 1

Deeds of Settlement initialled (see Notes 2 and 4)

2 2 4

Number of applications in formal engagement processes with the Crown regarding customary interests in the takutai moana

4 4 12

The Crown is represented at 100% of current High Court hearings in relation to takutai moana cases

100% 100% 100%

Note 1 - This indicator provides a standardised score for technical quality reviews of policy advice, which are undertaken by a third- party assessor. The review may include an assessment of clarity, accuracy, analytical rigour, fitness for purpose, and relevance.

Note 2 - The Ministry does not have full control over the achievement of these measures as it is partially reliant on claimant groups undertaking the work required by them to achieve a mandate to negotiate, broadly agree to the Crown's offer and move steadily towards the conclusion of negotiations.

Note 3 - An Agreement in Principle is agreed between the Crown and a claimant group. The document describes the broad outline of a settlement package and is signed by the claimant group and the Minister for Treaty of Waitangi Negotiations.

Note 4 - A Deed of Settlement is the complete, detailed and formal settlement agreement between the Crown and the claimant group.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Justice in its Annual Report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000

Current Government

           
Implementation of Marine and Coastal Area Customary Interests 2020/21 - 3,640 3,640 3,640 3,640
Continue Momentum to Complete Historical Treaty of Waitangi Settlements 2020/21 - 5,000 5,000 - -
Relativity Mechanism Dispute Resolution 2020/21 - 2,500 - - -
Maintaining Critical Technology to ensure the Delivery of Justice Services 2020/21 - 337 130 132 134
Reasons for Change in Appropriation

The increase in the appropriation for 2020/21 of $22.579 million is mainly due to:

  • a fiscally neutral adjustment of $22.747 million from Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act MCA to simplify the appropriation structure in line with the modernising the public finance system and to reflect a broader legislative mandate, and
  • an increase of $5 million for increased costs related to litigation in the Waitangi Tribunal and High Courts.

This was partially offset by:

  • a one-off increase of $4 million in 2019/20 to support the completion of historical Treaty of Waitangi settlement negotiations, and
  • an expense transfer of $961,000 from 2018/19 to 2019/20 for negotiation costs.

Part 3 - Details of Non-Departmental Appropriations#

3.4 - Non-Departmental Other Expenses#

Claimant Funding (M74)

Scope of Appropriation
This appropriation is limited to payment of claimant funding related to the settlement of historical Treaty of Waitangi claims.
Expenses
  2019/20 2020/21
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 13,102 5,000 8,102
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an effective process for providing financial assistance for claimant groups, to achieve durable historical Treaty of Waitangi settlements.

How Performance will be Assessed and End of Year Reporting Requirements
Assessment of Performance 2019/20 2020/21
Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Number of claimant groups (see Note 1)

40 40 40

Percentage of payments made to groups within 10 working days of approval of claim

95% 95% 95%

Note 1 - Claimant groups can lodge an application for funding at any stage of the negotiation and settlement process. The amount of funding they may receive depends on the size of the claimant group and the complexity of the claim.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister for Treaty of Waitangi Negotiations in a report appended to the Ministry of Justice's Annual Report.

Reasons for Change in Appropriation

The decrease in this appropriation for 2020/21 of $5 million is due to an expense transfer from 2018/19 to 2019/20 of unused claimant funding.

Financial Assistance Toward Determining Customary Interests in the Marine and Coastal Area (M74)

Scope of Appropriation
This appropriation is limited to providing financial assistance to applicant groups to investigate their customary interests in the marine and coastal area.
Expenses
  2019/20 2020/21
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 8,680 1,998 10,450
Comparators for Restructured Appropriation
Vote, Type and Title of Appropriation 2019/20 2020/21
Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Vote Treaty Negotiations: Non-Departmental Other Expenses:
Contribution Toward Determining Customary Interests in the Marine and Coastal Area
2,549 2,549 -
Total 2,549 2,549 10,450
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve supporting an efficient process for providing financial assistance for the investigation of applicant groups' customary rights in the Marine and Coastal Area.

How Performance will be Assessed and End of Year Reporting Requirements
Assessment of Performance 2019/20 2020/21
Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of funding payments made to groups within 10 days of approval of claim

95% 95% 95%
End of Year Performance Reporting

Performance information for this appropriation will be reported by the Minister for Treaty of Waitangi Negotiations in a report appended to the Ministry of Justice's Annual Report.

Reasons for Change in Appropriation

The increase in this appropriation for 2020/21 of $1.770 million is due to a fiscally neutral adjustment of $2.549 million from the Contribution Toward Determining Customary Interests in the Marine and Coastal Area appropriation to reflect a broader legislative scope.

This was partially offset by an expense transfer of $779,000 from 2018/19 to 2019/20 to support additional demand for contributions toward determining customary interests.

Historical Treaty of Waitangi Settlements 2019 - 2023 (M74)

Scope of Appropriation and Expenses
Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Historical Treaty of Waitangi Settlements 2019 - 2023 (M74)

This appropriation is limited to the settlement of historical Treaty of Waitangi claims, including redress through the transfer of assets (cash and property) from the Crown to the claimant groups, and any simple interest payable on settlements between the date specified in the Deed of Settlement and the settlement date.

Commences: 30 June 2019

Expires: 30 June 2023
Original Appropriation 1,400,000
Estimated Actual for 2019/20 350,000

A multi-year appropriation for historical Treaty of Waitangi settlements is established each year in the Appropriation (Supplementary Estimates) Act, and the previous multi-year appropriation is revoked. The reason for this change is to ensure there is sufficient legal authority to finalise deeds of settlements negotiated in earlier years and to continue the momentum of settling Treaty of Waitangi claims.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve durable settlement of historical Treaty of Waitangi claims.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this appropriation is solely for the settlement of claims, including redress. Performance information relating to what is intended to be achieved with this expenditure is provided under the Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act multi-category appropriation.

Historical Treaty of Waitangi Settlements 2020 - 2024 (M74)

Scope of Appropriation and Expenses
Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Historical Treaty of Waitangi Settlements 2020 - 2024 (M74)

This appropriation is limited to the settlement of historical Treaty of Waitangi claims, including redress through the transfer of assets (cash and property) from the Crown to the claimant groups, and any simple interest payable on settlements between the date specified in the Deed of Settlement and the settlement date.

Commences: 30 June 2020

Expires: 30 June 2024
Original Appropriation 1,400,000
Estimated Actual for 2019/20 -

A multi-year appropriation for historical Treaty of Waitangi settlements is established each year in the Appropriation (Supplementary Estimates) Act, and the previous multi-year appropriation is revoked. The reason for this change is to ensure there is sufficient legal authority to finalise deeds of settlements negotiated in earlier years and to continue the momentum of settling Treaty of Waitangi claims.

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve durable settlement of historical Treaty of Waitangi claims.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under s15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this appropriation is solely for the settlement of claims, including redress. Performance information relating to what is intended to be achieved with this expenditure is provided under the Treaty Negotiations and Marine and Coastal Area (Takutai Moana) Act multi-category appropriation.